flat company gone bust - help!

bubblepop_2

I bought my first flat last year, moved in but communal areas are still not finished and been nagging since moved in for them to finish them - just read in the paper the company have gone bankrupt - argh! Where does this leave me? Someone has to be responsible for finishing the site surely? I just want it finished so I can sell the flat and get out of there!!!!!

KimYeovil

Just sell it as is.

clutton_2

without a functioning management company no purchaser will get a mortgage to buy it.

if you are desperate to sell, you need to set up your own management company - do a search on here, there is a lot of advice on how to do it

bubblepop_2

Only want to sell if I'm going to retain some of my deposit so at least I have hope in hell of getting somewhere else -which will only happen once the site is complete!

Looked at my documents and hopefully the NHBC will cover the actual completion of the site as its within 2 years of build, but will have to find out about the management company thing - will the administrators just leave that side of it then? Worried about setting up our own company and organising everyone to put money in etc - I don't mind putting the work in but not sure if anyone will help me!!!

Will never buy a new build as long as I live - the way we've been treated is appalling :mad:

astreix

bubblepop wrote: »

will the administrators just leave that side of it then?

The administrator owe a duty of care only to the creditors of the firm and hence are unlikely to be interested in completing any work needed... that is unless, completing the work could help them recover more money than what they'll spend (e..g if they have unsold flats, which can be sold for a good price if work is completed).

poppy10_2

bubblepop wrote:

Following on from a post yesterday - it's now been confirmed that the development company I bought my flat off last year has gone into liquidation - although they also had seperate companies dealing with individual sites have NOT been affected - any idea what this means for me?

The site is not completed (no communal carpets, roadways not tarmacced etc) - the person I spoke to at the company dealing with the liquidation said something about them trying to work out if the individual companies can get the work completed?

Have also spoken to the NHBC who said whilst they will cover building works they weren't sure about communal carpets which is very worrying as at the moment I walk up two flights of dirty concrete floors to get to flat and I'll never sell without communal carpets - surely someone has to take responsibility for it?

Please help - am really panicking -it's my first flat and very worried that although I love it, in the long run buying it is going to be the worst thing I ever did

The "someone has to take responsibility for it" is you and your fellow neighbours, I'm afraid.

worried_jim

have a look at bbc watchdog from last night- all about management co's.

bubblepop_2

what the whole carpeting of the communal areas when it's dirty concrete at the mo?! it'd cost thousands! surely it's breach of contract as they sold it to us with the promise of carpets included?

zappahey

bubblepop wrote: »

what the whole carpeting of the communal areas when it's dirty concrete at the mo?! it'd cost thousands! surely it's breach of contract as they sold it to us with the promise of carpets included?

They've gone bust, who are you going to sue?

astreix

bubblepop wrote: »

surely it's breach of contract as they sold it to us with the promise of carpets included?

You are probably correct in that it is a breach of contract. However that doesn't mean much in case of insolvency of the company. You could sue the company for this if you wish. Assuming you win you'll just join a long queue of creditors. After clearing statutory dues and secured creditors if anything is left the administrators will then pay you.

Obviously it will cost you to sue and the most likely outcome is that you won't see a penny.

Sorry... not probably what you might be hoping to hear, but I'm afraid you don't have much options to force the company to fulfil its promises.

bubblepop_2

thanks - i suppose i'll just have to push the NHBC to do something. It's also been mentioned that whoever takes over the building (if anyone does) might do something - there's still about 15 flats in my block to sell (hence why I'm worried about sharing carpet costs with only 4 other owners at the mo) so to sell those hopefully they'll invest in carpets to help sell.
I know it must sound like a silly thing to be worried about but it's so depressing walking up 2 flights of stairs with bare dirty concrete